The Iloilo City government is looking for companies interested to undertake a Public-Private Partnership (PPP) for the rehabilitation of the two biggest public markets in the city.
Iloilo Terminal Market or “Super” and Central Market are up for rehab under the PPP scheme as the city seeks to transform the dilapidated facilities and structures of the two public markets.
Previous attempts of past administrations to undertake the project were stalled as market vendors fear they will lose their spots to the private sector partner. They also labeled the project as a form of privatization that could lead to higher rents.
According to Mayor Jerry Treñas, two companies have expressed their intent to undertake the rehabilitation project.
“Duha nagpabutyag para sa aton nga Iloilo Terminal kag Central Market project. Padayon gihapon kita nga bukas para sa mga interesado nga kompanya sa idalom sang PPP,” he said in a media interview on Monday.
The mayor also sought the help of the PPP Center to solicit help from the private sectors for the funding of big-ticket projects of Iloilo City like the rehabilitation of the Iloilo Terminal and Central markets.
Last April 21 to April 30, 2021, a virtual market sounding activity was facilitated by the Iloilo City government with the PPP center to provide a brief background and envision the scope of the project to potential private sector participants. It also sought to understand key considerations of the private sector regarding their potential involvement in the project in partnership with the city.
The redevelopment project of the two markets has an indicative investment cost ranging from P2.9 to 3.6 billion and will involve design, finance and construction of mixed-use buildings, operation and maintenance of commercial spaces, and maintenance of the whole facility for a period of 30 years, subject to finalization of business case.
Potential revenue for the prospective private sector will also include rental fees from public market and commercial spaces, cargo-handling charges, vehicular docking charges, warehousing/cold storage rental charges, bulk hauling and terminal fees, and parking fees.
Meanwhile, Treñas assured the vendors of the two markets that they will not be adversely affected in case the PPP project pushes through.
“Wala gid sila sang kabalak-an sa tion madayon ang aton nga PPP project sa duha ka merkado,” he said.
Last August 2019, the Iloilo City government signed a memorandum of agreement (MOA) with the PPP Center to outline the technical assistance that the PPP Center will provide for big-ticket infrastructure projects of the metro.
Aside from the two public markets, among the projects that will be undertaken by the city government under the PPP scheme include the development of the Iloilo City slaughterhouse, Integrated Solid Waste Management, and three areas for reclamation.
“Throughout the pandemic, we have proved that Iloilo City has a strong partnership with both private and public sectors, and opportunities keep on coming. We welcome more investors as I believe the metro has proven its progress through the years,” the mayor said. (ERS)
